Japanese automaker Toyota Motor expects net profit to fall 34.9% in the fiscal year 2025 (ending March 31, 2026) due to tariffs imposed by the administration of US President Donald Trump. This is stated in the financial forecast published by the company.
According to the forecast, Toyota expects net profit of 3.1 trillion yen (about $21.6 billion at the current exchange rate), which is 34.9% less than a year earlier. At the same time, operating profit will decrease by 20.8% to 3.9 trillion yen ($27.1 billion). The US accounts for about 20% of all Toyota sales abroad.
On April 2, US President Donald Trump announced the introduction of increased tariffs on goods from 185 countries and territories. The universal tariffs of 10% came into effect on April 5, and individual tariffs for individual countries - from April 9. An additional tariff rate of 24% was set for Japan. At the same time, the US set a 90-day delay in the introduction of these tariffs to allow for negotiations. In addition, Washington has already started applying a 25% tariff on imported cars, auto parts and components.
Tokyo is urging Washington to review its customs policy - consultations are underway between the two countries on the issue of all tariff increases, including for cars, steel and aluminum. Meanwhile, Japanese media reported earlier that US officials refused to even discuss the issue of lifting the increased tariffs on these key Japanese exports in early May during the second round of talks. The third round of talks is expected to be held in the second half of May, with a view to reaching a final bilateral agreement on tariffs next month.